Subject:
Title
Commercial Insurance Program renewal for March 1, 2025-2026, for Property and Casualty risks.
label
Recommended Action:
Recommended Action
Approval by the County Administrator of the Commercial Insurance Program renewal for March 1, 2025.
• Property Coverage: We have maintained our current property limits and deductibles with a renewal of $4,422,412 which is an 11% reduction in premium.
• FM Global Property Coverage: Carrier provided both resiliency $414,193 and membership $2,070,966 credits. The renewal of $6,187,664 is a -.10.00% decrease for 2025.
• Liability Coverage Highlights:
o Cyber liability: Increased coverage to $15M which is in line with benchmarks and revenue of County. Renewal premium is $265,000 which is a 179% increase for 2025.
o Excess Workers Comp: Catastrophic claim. Renewal premium of $394,464 is an 18.25% increase for 2025.
o Public Entity Liability & Excess: No changes to $10M limit. Renewal premium of $1,522,000 which is a 2.63% increase for 2025.
o Jail Healthcare and Miscellaneous Professional: Renewal premium of $498,193, a 6.48% increase for 2025.
o Airport Liability: No coverage changes. Renewal premium of $102,312, a -10.92% decrease for 2025.
o Aircraft Hull: No coverage changes. Renewal premium of $194,571, a 9.16% increase for 2025.
o Traffic Maintenance General Liability: Renewal premium of $63,755, a -.16% decrease for 2025.
o Trail and Tradeshow Liability: Current Limits $26M. Renewal premium of $222,000, a 7.90% increase for 2025.
o Pollution Liability: Above ground fuel tanks. Renewal premium of $106,603, a 3.5% increase for 2025.
o Terrorism: Added Solid Waste and Utilities to coverage. Renewal premium of $81,000, a 154% increase for 2025.
• Total Policy Premiums: Insurance cost for 2025 is $14,243,393 for an overall decrease of -5.65% over the 2024 proposal; however, $3.4M under the budget amount of $17.6M primarily due to the resiliency and membership credits totaling $2.5M, which lowered our total premium with FM Global.
Funding for this renewal is sufficiently included in the FY25 Operating Budget for the Department of Administrative Services (DAS) in the Risk Financing Fund. Body
Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
5.2 Be responsible stewards of the public’s resources
5.3 Ensure effective and efficient delivery of county services and support
5.4 Strive to exceed customer expectations
Summary:
Insurance renewal invoices are for the purchase of Commercial Insurance for Property and Casualty risks. The insurance covers County-owned property and various areas of Liability Insurance for the Board of County Commissioners (Board) and the Appointing Authorities, including the Sheriff. The Clerk of the Circuit Court does not participate in the County’s Workers Compensation insurance policy. Commercial Insurance coverage is provided by both Arthur J Gallagher and FM, requiring payment of policy premiums within 30 days of binding coverage to prevent cancellation.
Background/Explanation:
On March 18, 2008, the Board delegated authority to the County Administrator, or his/her designee, to execute forms, applications, and documents necessary to continue coverage for each renewal term due to the limited time to bind insurance premiums, typically within 30 days of receiving renewal pricing. At that time, the Board also delegated authority to the County Administrator or designee to sign all insurance invoices for future insurance premiums and renewal premiums. Each year, Risk Management includes a summary of commercial insurance coverages renewed for the upcoming year.
Fiscal Impact:
The projected annual renewal cost for FY25 is $14,243,393.
Funding for this renewal is sufficiently included in the FY25 Operating Budget for DAS in the Risk Financing Fund.
Delegated Authority:
Authority for the County Administrator to accept the commercial insurance coverages and approve the insurance premium invoices was granted by the Board on March 18, 2008, per attached.
Staff Member Responsible:
Valerie Edmons, Insurance Manager, Risk Management, Administrative Services
Keith Bentley Director, Risk Management, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
Premium summary for 2025
Comparison of Insurance Coverages and Premiums for 2025
Delegated authority dated March 18, 2008